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Industrial
Licensing
Industrial
Licensing Policy
All
industrial undertakings are exempt from obtaining an
industrial license to manufacture except for-
-
industries reserved for public sector, viz.
-
Arms and ammunition and allied items of defence
equipment, defence aircraft and warships.
-
Atomic Energy.
-
Railway Transport.
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industries
retained under compulsory licensing, viz.
Note:
The compulsory licensing provisions would not apply
in respect of the small scale units taking up the manufacture
of any of the above items reserved for exclusive manufacture
in small scale sector.
- items
of manufacture reserved for the small scale sector,
and
- if
the proposal attracts locational restriction.
Locational
Policy
Industrial undertakings are free to select
the location of a project. In the case of cities with
population of more than a million (as per the 1991 census),
however, the proposed location should be at least 25
KM away from the Standard Urban Area limits of that
city unless, it is to be located
in
an area designated as an "industrial area"
before the 25th July, 1991 (List of cities with population
of 1 million and above is annexed.
Electronics,
Computer Software and Printing (and any other industry
which may be notified in future as "non polluting
industry") are exempt from such locational restriction.
Relaxation
in the aforesaid locational restriction is possible
if an industrial license is obtained as per the notified
procedure.
The
location of industrial units is further regulated by
the local zoning and land use regulations as also the
environmental regulations. Hence, even if the requirement
of the locational policy is fulfilled, if the local
zoning and land use regulations of a State Government,
or the regulations of the Ministry of Environment do
not permit setting up of an industry at a location,
the entrepreneur would be required to abide by that
decision.
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